How to explain the difference between fiscal policy and monetary policy?
Fiscal policy is a set of government policies and programs that affect the economy through changes in government spending and taxation. This includes measures such as budget deficits, tax cuts, and increased government spending. Monetary policy, on the other hand, is the policy of a central bank that controls the supply of money in an economy. Fiscal policy is a tool that governments use to influence the economy and achieve desired economic goals.